Zloty Trades Sideways Ahead Of NBP Rate Decision

EUR/PLN fluctuates around unchanged levels, despite broader USD strength. The rate remains in a short-term sideways trend, last sitting at 4.4533. POLGB yields are lower across the curve, with belly outperforming. From a technical perspective, bears look for a move in EUR/PLN through Oct 17/Jul 31 lows of 4.4096/4.3986. On the flip side, a clearance of Oct 25 high of 4.4898 would expose the 50-EMA at 4.5057.

• President Andrzej Duda asked Mateusz Morawiecki to try and form government. Morawiecki is widely expected to fail but the ruling Law and Justice (PiS) party will continue to govern in caretaker capacity for a few more weeks. A PiS source told DGP that there was a conviction among rank-and-file PiS members that the President would be a "traitor" if he failed to appoint Morawiecki as the initial PM candidate, which would reduce Duda's chances for a return to party politics once his term expires in 2025. Furthermore, the President's decision gives PiS more time to secure a softer landing after the electoral defeat. It may have implications for factional struggles within the ruling party.
• The NBP will announce its monetary policy decision tomorrow (there is no fixed time for the announcement). Governor Adam Glapinski will hold a press conference to explain the decision and discuss the central bank's assessment of the economy. Click here to see our preview of the decision.